Real Estate News: Berlin - Full occupancy in desirable locations

Written by Engel & Völkers on 17.9.2015

At times, the growing city of Berlin appears to be running out of space for trade, industry and logistics. The supply situation is expected to improve in the future. "Available modern logistics spaces are currently under construction or in planning, in close proximity to the future BER airport," reassures Sebastian König, Head of Industry at Engel & Völkers Commercial Berlin. An enhanced reconfiguration of sought-after logistics spaces from 3,000m² within the motorway ring, is likely to lead to additional relaxation of demand for medium-sized and large objects.

On the market for industrial and logistics space in Berlin and its surrounding areas, a take-up of 146,000m² was registered in the first half of 2015. Compared to the first half of 2014 (176,000 m²), the results were lower by 30,000 m². “This development, among others, is attributable to the small number of transactions in the size class over 10,000m²,” König explains. The greatest take-up of 13,600 m² was carried out via an e-commerce logistics provider in Marquardt in the submarket to the surrounding West. As a constant demand group for large logistics spaces, online commerce in the surrounding areas no longer appeared effective on the market.

Despite the overall negative result for the region as a whole, take-up in the metropolitan area showed positive development. 21,000m² more take-up was registered there than in the same period last year, with noticeably more transactions between 5,000 and 10,000 m². This result highlights two major transactions in the technology park Adlershof (Treptow-Köpenick district) with a total of 13,300m² and a transaction at Beeskowdamm in the Steglitz-Zehlendorf district with 10,000m². Companies in the field of ‘transport logistics’ represent the industry with the highest take-u with a share of 43%. This was followed by ‘industry and trade’ with a share of 26%, and ‘commerce’ with 25%.

The majority of take-up (86%) is attributable to letting agreements, of which 6% accounts for new construction sites. As a result, 14% of the spaces were acquired by owner occupiers (stock properties). Due to the low interest rates, owner-occupiers are still searching for properties, particularly in locations in central Berlin. For this demand group, stock spaces of up to 2,000m² are available in Tempelhof and Marienfelde, for example. The rents shifted at a stable level in all locations and fall within a range of between 3.50 euros/m² and 5.50 euros/m². "In the best locations, rents of 7.50 euros/m² are feasibly in the upper range for smaller spaces of up to 1,000m²," says König.

After the relatively weak first half of the year, take-up is expected to increase by the end of year, reaching a level similar to 2014 (320,000 m²) for the year overall. The buoyant atmosphere in the Berlin economy is also expected to strengthen the number of space applications for owner-occupiers. Rental prices will shift at a constant level.